Is your dealership ready for Obamacare?
Not quite a year ago we reported in Successful Dealer that the deadline for employers to offer healthcare under the Affordable Care Act (Obamacare) had been postponed to 2015.
Welcome news at the time, the extension allowed business owners and insurers another year to familiarize themselves with their requirements under the new law.
Well, even though it doesn’t seem like it, that 2015 deadline is fast approaching.
If you aren’t ready yet, it’s time to get cracking.
Implementing healthcare changes isn’t always a swift process, and unlike last year, another extension isn’t on the horizon.
Beginning promptly on Jan. 1, 2015, your business may be required to meet all aspects of the employer mandate.
Here are some of the basics: all businesses in the United States with 100 or more full-time equivalent employees will be required to offer healthcare to employees under the Affordable Care Act on Jan. 1, 2015. (Not sure what full-time equivalent means, CLICK HERE for an explanation.) Businesses with between 50 and 99 full-time equivalent employees will need to do the same on 1-1-2016.
(The IRS website also has a wealth of information on full-time equivalency and employer responsibilities HERE.)
Failure to do so will put your business at risk for a variety of fines, including a $2,000 per full-time employee penalty if your staff must purchase insurance elsewhere.
If your operation is safely below the 50 full-time equivalent threshold there is “no penalty or requirement to offer insurance,” but “those who qualify for the small employer tax credit must purchase a plan from the Small Business Health Options Program (SHOP) exchange. If an employer chooses to offer health insurance, it must cover the essential health benefits package.”
For more on that option, CLICK HERE.
Good luck moving forward. You have six months.